The Finocchiaro CLP Government is backing the Territory’s gas sector and delivering on our commitment to rebuild the NT economy by growing our gas production, royalty revenue streams and attracting greater private investment.

Deputy Chief Minister Gerard Maley recently toured the Mereenie gas facility in Central Australia, accompanied by executives from Central Petroleum, Echelon Resources and Horizon Oil Limited.

The Mereenie Joint Venture, operated by Central Petroleum in partnership with Echelon Resources, Horizon Oil Limited and Cue Energy, demonstrates the long-term viability and economic value of onshore gas production in the Territory, by providing years of energy security, royalty revenue and local employment to Territorians.

The Mereenie gas field has been in operation for about 40 years, providing vital energy to Territory homes and businesses.

As the NT’s primary onshore gas producer, the Mereenie JV has demonstrated a longstanding commitment to local employment and has generated millions in royalty revenue and supported local NT supply chains.

Typically, the Territory begins receiving petroleum royalties once a company moves from the exploration and appraisal phase through to production, with the granting of a production licence. 

Alternatively, if a company receives a Beneficial Use of Gas or ‘appraisal gas’ approval while holding an exploration permit or retention licence and they subsequently sell the appraisal gas, then royalties are payable to the Northern Territory.

Each year, Central Petroleum and its partners pay royalties to both the NT Government and the Central Land Council.

Recent drilling of the West Mereenie 29 and 30 wells has exceeded expectations, with Central Petroleum and partners recently supplying about 30 terajoules of gas to the NT market per day, which is about half of the Territory’s daily gas demand.

Mr Maley also visited the Inpex Ichthys Liquefied Natural Gas processing facility at Bladin Point, which represents one of the largest private investments ever in the Northern Territory, valued at about $60 billion.

“The Mereenie and Ichthys projects symbolise the scale and significant opportunity afforded to the Territory by our gas industry," said Mr Maley.

“The Finocchiaro CLP Government promised 2025 would be a year of action, certainty and security, and these operations are not only driving energy security, but they’re creating jobs and opportunities for Territorians.”

Inpex is preparing for a planned maintenance shutdown from late August to October this year, at an estimated cost of over $300 million, to lay the groundwork for future expansion and emissions reduction initiatives.

This will result in an additional 1,000 workers at the Ichthys LNG facility and 22 local contracts, providing opportunities for Territory businesses.

Last week, Inpex, as operator of the Bonaparte Carbon Capture and Storage Venture, with partners TotalEnergies and Woodside Energy, announced the commencement of preliminary front-end engineering design work to develop the Bonaparte CCS Project in the Bonaparte Basin, about 260 km offshore to the west of Darwin.

This is a critical milestone in the development of Darwin as a low-emissions and decarbonisation powerhouse, with Inpex's Ichthys LNG project to be the anchor customer for the Bonaparte CCS project, which is capable of storing up to 10 million tonnes of carbon dioxide per annum.

Source: Northern Territory Government Newsroom